Announcing 13 percent price drop for the year 2014, Chevrolet has announced the price of Chevrolet Volt to be $5000 less.

The main reason for prices drop, as said by General Motor Corporations, is the tough competition Volt is facing from better selling Toyota Prius and Nissan Leaf.

The 2014 Volt will arrive in US dealerships later this month with a price of $34,995 which includes $810 destination fee.

Though Volt features some of the most advanced and expensive technology available, it still looks and feels like a compact car which means that only dedicated fans are willing to pay car’s asking price.

According to a report by The Wall Street Journal, Volt, which uses a gasoline motor to extend its range to 380 miles, not only has to compete with other plug-in cars but it also faces a tough competition from the conventional gas powered cars in Chevrolet’s showroom.

Cars like Chevrolet spark, Sonic and Cruze Eco are available for $20,000 which is $7000 less than the price of Volt. “When you can have Cruze that offers a pretty decent MPG in a price less than Volt, who needs Volt then”, asks Jalopnik.

The price cut, however, is available in the markets of USA only, says Adria Mackenzie. Canadian pricing will be announced later.

Tony Faria, professor of marketing at the Odette School of Business at the University of Windsor, says that almost every company is cutting down the price of electric vehicles. This would indeed help Volt in increasing its sales.